9911796707
TMI BlogSCHEDULE II -See section 123X X X X Extracts X X X X X X X X Extracts X X X X ..... ifference and provide justification in this behalf duly supported by technical advice] (ii) 7[For intangible assets, the relevant Indian Accounting Standards (Ind AS) shall apply. Where a company is not required to comply with the Indian Accounting Standards (Ind AS), it shall comply with relevant Accounting Standards under Companies (Accounting Standards) Rules, 2006. ], except in case of intangible assets (Toll Roads) created under 'Build, Operate and Transfer', 'Build, Own, Operate and Transfer' or any other form of public private partnership route in case of road projects. Amortisation in such cases may be done as follows:- (a) Mode of amortisation Amortisation Rate = Amortisation Amount -------------------------------------- x 100 Cost of Intangible Assets (A) Amortisation Amount = Cost of Intangible Assets (A) x Actual Revenue for the year (B) --------------------------------------------------------- Projected Revenue from Intangible Asset (till the end of the concession period) (C) (b) Meaning of particulars are as follows :- Cost of Intangible Assets (A) = Cost incurred by the company in accordance with the accounting standards. Actual Revenue for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Parts A and B above, the following are the useful lives of various tangible assets: Nature of assets Useful Life I. Buildings [NESD] (a) Buildings (other than factory buildings) RCC Frame Structure 60 Years (b) Buildings (other than factory buildings) other than RCC Frame Structure 30 Years (c) Factory buildings -do- (d) Fences, wells, tube wells 5 Years (e) Others (including temporary structure, etc.) 3 Years II. Bridges, culverts, bunders, etc. [NESD] 30 Years III. Roads [NESD] (a) Carpeted roads (i) Carpeted Roads-RCC 10 Years (ii) Carpeted Roads-other than RCC 5 Years (b) Non-carpeted roads 3 Years IV. Plant and Machinery (i) General rate applicable to plant and machinery not covered under special plant and machinery (a) Plant and Machinery other than continuous process plant not covered under specific industries 15 Years (b) 2[(b) continuous process plant for which no special rate has been prescribed under (ii) below [NESD] 25 years] (ii) Special Plant and Machinery (a) Plant and Machinery related to production and exhibition of Motion Picture Films 1. Cinematograph films-Machinery used in the production and exhibition of cinematograph fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... do- 7. Roll Grinder 40 Years 8. Soaking Pit 30 Years 9. Annealing Furnace -do- 10. Rolling Mills -do- 11. Equipments for Scalping, Slitting , etc. [NESD] -do- 12. Surface Miner, Ripper Dozer, etc., used in mines 25 Years 13. Copper refining plant [NESD] -do- (i) Plant and Machinery used in medical and surgical operations [NESD] 1. Electrical Machinery, X-ray and electrotherapeutic apparatus and accessories thereto, medical, diagnostic equipments, namely, Cat-Scan, Ultrasound Machines, ECG Monitors, etc. 13 Years 2. Other Equipments. 15 Years (j) Plant and Machinery used in manufacture of pharmaceuticals and chemicals [NESD] 1. Reactors 20 Years 2. Distillation Columns -do- 3. Drying equipments/Centrifuges and Decanters -do- 4. Vessel/storage tanks -do- (k) Plant and Machinery used in civil construction 1. Concreting, Crushing, Piling Equipments and Road Making Equipments 12 Years 2. Heavy Lift Equipments- Cranes with capacity of more than 100 tons 20 Years Cranes with capacity of less than 100 tons 15 Years 3. Transmission line, Tunneling Equipments [NESD] 10 Years 4. Earth-moving equipments 9 Years 5. Others including ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry equipment [NESD] (i) General laboratory equipment 10 Years (ii) Laboratory equipments used in educational institutions 5 Years XIV. Electrical Installations and Equipment [NESD] 10 years XV. Hydraulic works, pipelines and sluices [NESD] 15 Years Notes.- 1. "Factory buildings" does not include offices, godowns, staff quarters. 2. Where, during any financial year, any addition has been made to any asset, or where any asset has been sold, discarded, demolished or destroyed, the depreciation on such assets shall be calculated on a pro rata basis from the date of such addition or, as the case may be, up to the date on which such asset has been sold, discarded, demolished or destroyed. 3. The following information shall also be disclosed in the accounts, namely:- (i) depreciation methods used; and (ii) the useful lives of the assets for computing depreciation, if they are different from the life specified in the Schedule. 5[4(a) Useful life specified in Part C of the Schedule is for whole of the asset and where cost of a part of the asset is significant to total cost of the asset and useful life of that part is different from the useful life of the remaining ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , "Continuous process plant for which no special rate has been prescribed under (ii) below [NESD] 8 Years" 3. Omitted vide Notification File No. 17/60/2012-CL-V - Dated 1-4-2014, before it was read as,"5. Depreciable amount is the cost of an asset, or other amount substituted for cost, less its residual value. Ordinarily, the residual value of an asset is often insignificant but it should generally be not more than 5% of the original cost of the asset." 4. Substituted vide Notification dated the 29th August, 2014, Earlier it was read as, "1[(i) The useful life of an asset shall not be longer than the useful life specified in Part 'C' and the residual value of an asset shall not be more than five per cent. of the original cost of the asset: Provided that where a company uses a useful life or residual value of the asset which is different from the above limits, justification for the difference shall be disclosed in its financial statement." 5. Substituted vide Notification dated the 29th August, 2014, Earlier it was read as, "4. Useful life specified in Part C of the Schedule is for whole of the asset. Where cost of a part of the asset is significant to total ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
